Bursa enhances ACE Market listing requirements for greater clarity

by **Cals** Mon 13 Jul 2015, 18:43

Bursa enhances ACE Market listing requirements for greater clarity

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By Levina Lim / theedgemarkets.com | July 13, 2015 : 4:06 PM MYT

KUALA LUMPUR (July 13): [size=14]Bursa ([You must be registered and logged in to see this image.] Financial Dashboard) Malaysia has enhanced the ACE Market initial listing framework to enable greater clarity for emerging companies that wish to raise capital on the alternative market.

According to Bursa chief regulatory officer Selvarany Rasiah, these include clarifying companies which are unsuitable for listing, introduction of a new pre-IPO (initial public offering) and the requirement to have an independent market research report in IPO applications.

"ACE Market applicants who are unsuitable for listing include those with a loss making business, showing declining profits which may raise doubt on its potential, and those suffering from growth profitability without any growth in financial results," she told a media briefing on the enhancements to the ACE Market listing requirements today.

Nevertheless, if the sponsor or investment bank is able to show acceptable justifications on the prospect of the business, the companies may be accepted for a listing.

Corporate finance advisers will now also be allowed to act as independent advisers, from just investment banks previously, to make the ACE Market more attractive.

They will be allowed to facilitate transactions related to related party transactions, major disposal and voluntary withdrawal of listing of ACE Market companies.

A new free pre-IPO consultation service will also be provided to applicants to check on their suitability before embarking on the IPO.

Selvarany said four companies have been approved for ACE Market listing this year, two of which have already been listed. This compared with three ACE Market listings on Bursa in 2014.

"Investors can expect another five applications for IPOs on the ACE Market this year," she said.
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